Coffee is Commercial heaven for coffee companies

Coffee roasters – the large companies which process and market the coffee– have seen their profits rise to record levels. The big four coffee roasters, Kraft, Nestlé, Procter & Gamble and Sara Lee, make very high profits compared with other food and drink brands – between 17 and 26 per centof the retail price. As one business analyst reported, ‘ Nothing else in food and beverages is remotely as good.'1 Most food and drink manufacturers make profits of between five and 12 per cent of the retail price. source: http://www.oxfam.org.uk/education/resources/coffee_chain_game

Let's Examine Fair Trade and consider the impact of our choices as global citizens

Results of our exercise on the profit share of a 100 gram bag of branded instant coffee sold at $3.80 (do euros if you like)
Jets results:

Sharks results:

Consider the Coffee Chain Activity we did in class and answer the following in your notebooks

What is the "problem with coffee?" To answer this you should note how many people depend on growing coffee and the effects of low coffee prices on those producers?
Discuss one long term effect of the low price of coffee. (somebody please post a picture of your graphic organizer on this here)

3. Why is the price of coffee so low?
4. Look at the supply chain your group put in order. Explain why there is such an imbalance in terms of power between the TCNs at the end of the chain and the people who actually grow the basic commodity of the coffee bean?

5. What solutions to this imbalance can you propose?

One Proposed solution to the many social, economic, and political problems created by the imbalance in coffee trade is the promotion of Fair Trade

Definitions of Fair Trade
Fair Trade is an internationally-recognized approach to trading which aims to ensure that producers in poor countries get a fair deal. A fair deal includes a fair price for goods and services, decent working conditions, and a commitment from buyers so that there is reasonable security for the producers.

The Fairtrade Foundation, Oxfam and Traidcraft agree the following definition of fair trade: Fair Trade is an alternative approach to conventional international trade. It is a trading partnership which aims at sustainable development for excluded and disadvantaged producers. It seeks to do this by providing better trading conditions, by awareness raising and by campaigning.
According to the International Fair Trade Association (IFAT): Fair Trade is a trading partnership, based on dialogue, transparency and respect, that seeks greater equity in international trade. It contributes to sustainable development by offering better trading conditions to, and securing the rights of, marginalized producers and workers, especially in the South.

source: http://www.tribes.co.uk/responsible_travel/what_is_fair_trade